ISLAMABAD: Beyond the approaching election cycle and the present standby settlement, Pakistan wishes every other International Monetary Fund (IMF) program and the aid of different multilateral lenders, the lender said in a document launched on Tuesday, consistent with Dawn.
“Resolving Pakistan’s structural challenges, including long-term BOP [balance of payments] pressures, will require continued adjustment and creditor support beyond the current program period,” the Fund said in a 120-page report analyzing Pakistan’s macroeconomic outlook.
The report is based on the Memorandum of Economic and Fiscal Policies (MEFP) signed by Finance Minister Ishaq Dar and State Bank Governor Jameel AhmedDawn reported.
Dawn is one of the Pakistan dailies that reports on Social, Political, Economic issues in the country.
“A possible successor arrangement could help anchor the policy adjustments needed to restore Pakistan’s medium-term viability and ability to repay,” the report said.
The IMF assessment noted that Pakistan’s economic challenges were complex and multifaceted, and risks were exceptionally high.
“Addressing them requires steadfast implementation of agreed policies, as well as continued financial support from external partners. Consistent and decisive implementation of program agreements will be essential to reduce risks and maintain macroeconomic stability,” it said.
The lender insists that one more IMF program will be necessary to solve structural issues. The government has agreed to notify the public as soon as electricity rates increase by 5 Pakistan Rupees (PKR) per unit and gas prices increased by more than 40 per cent, according to the report. This is because the circular debt in the gas sector is now competing with losses in the power sector, according to Dawn.
The government has promised renegotiation of power-purchase agreements with remaining power producers (including Chinese) or prolonging their debt servicing tenors, Dawn reported.
In the gas sector, the government has committed to immediate notification of gas tariff adjustments determined by Ogra, besides merging the gas rates for both local and imported natural gas through a weighted average tariff.
The government has also given an undertaking to ringfence fiscal program as envisaged in the recent budget and other commitments with the IMF.
For this, the government will not allow supplementary grants for any additional unbudgeted spending over the parliamentary approved level in the current fiscal year, at least until the formation of a new government after the elections (except in case of a severe natural disaster).
The government has also given a “commitment not to launch any new tax amnesties or grant further any new tax exemptions in 2023-24 including through the budget or statutory regulatory orders without prior [assembly] approval”.
The executive has additionally supplied agreements with every province on their dedication to reaching an end-FY24 fiscal place in keeping with the fiscal 12 months’s common executive number one steadiness objective of PKR 401 billion and proceeding focal point on seriously pressing power sector insurance policies, together with to not introduce any gas subsidy, or cross-subsidy scheme, in FY23 and past, Dawn reported.
In addition, the federal government has dedicated to making sure financial and fiscal balance through returning to a market-determined change charge, reducing inflation towards the objective, and rebuilding foreign currency reserves.
It mentioned the government would chorus from offering steering or expressing a desire to marketplace members in regards to the change charge or regulating call for for foreign exchange thru administrative motion, Dawn reported.
If the right kind marketplace functioning is restored, the government have dedicated to keeping up the common top rate between the interbank and open marketplace charges at not more than 1.25 in keeping with cent and at least minus 1.25 in keeping with cent right through any consecutive 5 trade day-period and printed day-to-day. interbank and open marketplace change charges.
“Resolving Pakistan’s structural challenges, including long-term BOP [balance of payments] pressures, will require continued adjustment and creditor support beyond the current program period,” the Fund said in a 120-page report analyzing Pakistan’s macroeconomic outlook.
The report is based on the Memorandum of Economic and Fiscal Policies (MEFP) signed by Finance Minister Ishaq Dar and State Bank Governor Jameel AhmedDawn reported.
Dawn is one of the Pakistan dailies that reports on Social, Political, Economic issues in the country.
“A possible successor arrangement could help anchor the policy adjustments needed to restore Pakistan’s medium-term viability and ability to repay,” the report said.
The IMF assessment noted that Pakistan’s economic challenges were complex and multifaceted, and risks were exceptionally high.
“Addressing them requires steadfast implementation of agreed policies, as well as continued financial support from external partners. Consistent and decisive implementation of program agreements will be essential to reduce risks and maintain macroeconomic stability,” it said.
The lender insists that one more IMF program will be necessary to solve structural issues. The government has agreed to notify the public as soon as electricity rates increase by 5 Pakistan Rupees (PKR) per unit and gas prices increased by more than 40 per cent, according to the report. This is because the circular debt in the gas sector is now competing with losses in the power sector, according to Dawn.
The government has promised renegotiation of power-purchase agreements with remaining power producers (including Chinese) or prolonging their debt servicing tenors, Dawn reported.
In the gas sector, the government has committed to immediate notification of gas tariff adjustments determined by Ogra, besides merging the gas rates for both local and imported natural gas through a weighted average tariff.
The government has also given an undertaking to ringfence fiscal program as envisaged in the recent budget and other commitments with the IMF.
For this, the government will not allow supplementary grants for any additional unbudgeted spending over the parliamentary approved level in the current fiscal year, at least until the formation of a new government after the elections (except in case of a severe natural disaster).
The government has also given a “commitment not to launch any new tax amnesties or grant further any new tax exemptions in 2023-24 including through the budget or statutory regulatory orders without prior [assembly] approval”.
The executive has additionally supplied agreements with every province on their dedication to reaching an end-FY24 fiscal place in keeping with the fiscal 12 months’s common executive number one steadiness objective of PKR 401 billion and proceeding focal point on seriously pressing power sector insurance policies, together with to not introduce any gas subsidy, or cross-subsidy scheme, in FY23 and past, Dawn reported.
In addition, the federal government has dedicated to making sure financial and fiscal balance through returning to a market-determined change charge, reducing inflation towards the objective, and rebuilding foreign currency reserves.
It mentioned the government would chorus from offering steering or expressing a desire to marketplace members in regards to the change charge or regulating call for for foreign exchange thru administrative motion, Dawn reported.
If the right kind marketplace functioning is restored, the government have dedicated to keeping up the common top rate between the interbank and open marketplace charges at not more than 1.25 in keeping with cent and at least minus 1.25 in keeping with cent right through any consecutive 5 trade day-period and printed day-to-day. interbank and open marketplace change charges.